October 27 2025

by The Wealthy Thinker Team

Reading Time: 1 min read

Diversification reduces risk without reducing returns – spread money across different investments.

Don’t put everything in one stock or sector.

Index funds provide instant diversification.

Consider international investing for geographic spread.

Rebalance periodically but don’t over-diversify with too many similar funds.

Focus on broad market exposure.

Index Funds vs ETFs: Which is Better for Your Goals?

The Wealthy Thinker Team

The Wealthy Thinker is a team of folks who love to talk about personal finances. We heard, "We wish we learned that in school," so often that we decided to create a website to share our own good habits, as well as provide a whole slew of educational info on financial literacy that absolutely anyone can adopt. We're here to help you grow your knowledge AND your wallet!